2Q09 EARNINGS - mzweb.com.br · Mineração Fazenda Brasileiro – Teofilândia (BA) Mineração Taboca – Pitinga (AM) Mineração Onça Puma - Ourilândia do Norte(PA) Learning

Kroton reports 2Q09 EBITDA growth of 61.7% to R$ 48.6 million. Supported by gross margin expansion of 4.0 p.p. and lower operating expenses, Kroton achieves EBITDA margin expansion in the quarter of 2.9 p.p. versus 2Q08. In the first six months of 2009, Kroton records growth of 29% in net revenue and an increase in net income of 199.5% to R$ 31.2 million. Belo Horizonte, August 12th , 2009 - Kroton Educacional S/A (Bovespa: KROT11), “Kroton” or “Company”, announces today its results for the second quarter of fiscal year 2009. Except where stated otherwise, the Company’s operating and financial information are presented on a consolidated basis and in Brazilian real, in accordance with Brazilian Corporate Law, and the analyses presented in this report refer to the Company’s performance in the second quarter of 2009 (2Q09) compared with the second quarter of 2008 (2Q08).

MAIN INDICATORS

2Q09 EARNINGS

CONFERENCE CALL 08/13/2009 (THURSDAY) English: g

Portuguese: g

Values in R$ (thousand) 2Q09 2Q08 Var. 6M09 6M08 Var.

Gross Sales Revenue 101,758 77,155 31.9% 218,369 153,574 42.2%

Net Sales Revenue 90,574 70,217 29.0% 198,030 141,202 40.2%

Net Income 6,316 2,109 199.5% 31,221 25,884 20.6%

Net Income Margin 7.0% 3.0% 4.0 p.p 15.8% 18.3% (2.6) p.p.

EBITDA 12,947 8,009 61.7% 48,643 33,957 43.2%

EBITDA Margin 14.3% 11.4% 2.9 p.p 24.6% 24.0% 0.5 p.p

Adjusted Net Income 7,438 5,815 27.9% 32,967 31,834 3.6%

Adjusted Net Income 8.2% 8.3% (0.1) p.p. 16.6% 22.5% (5.9) p.p.

2Q09 2Q08 Var.Primary and Secondary 226,600 207,700 9.1%

Pitágoras 38,490 32,199 19.5%

INED 4,740 3,510 35.0%

Post-Secondary Education 43,230 35,709 21.1%

Final Number of Students

Closing quote on 08/12/2009 - Price: R$16.60 / unit - Market Capitalization: R$ 522.08 million

MESSAGE FROM

MESSAGE FROM

Primary and

Secondary Education29,7%

Post-Secondary Education70,3%

2Q09 NET REVENUE MIX

MAIN

Assessment

Post-SecondaryEducation

Campi Belo Horizonte (MG) - 3 units Londrina (PR)Nova Lima (MG) São Luís (MA) Jundiaí (SP)Betim (MG) Vitória (ES)Divinópolis (MG) Guarapari (ES)Ipatinga (MG) Linhares (ES)Uberlândia (MG) Rio de Janeiro (RJ)Poços de Caldas (MG) Teixeira de Freitas (BA)

BH – Centro(MG) Venda Nova(MG) BH – Pampulha(MG) Jundiaí(SP) Guarapari(ES) Linhares (ES)Uberlândia (MG) Rio Claro (SP) Contagem (MG)Divinópolis(MG) Londrina (PR)

Primaryand

SecondaryEducation

Learning System - Private

654 schools in Brazil and 6 in Japan

Colégio da Lagoa (MG)

SchoolOperations

Bachelor DegreePrograms

Associate DegreePrograms

Colégio Pitágoras Cidade Jardim (MG)Colégio Pitágoras São Luis (MA)

CVRD – Carajás (PA)Embraer – São José dos Campos (SP)Mineração Fazenda Brasileiro – Teofilândia (BA)Mineração Taboca – Pitinga (AM)Mineração Onça Puma - Ourilândia do Norte(PA)

Learning System - Public

Educational solutions for improving the quality of public schools.

Primary and Secondary Education

34,4%

Post-Secondary Education65,6%

2Q08 NET REVENUE MIXNATIONAL PRESENCE

1

39

11

2

72

92

1

38

712

7

13

16

120

21

22

18

2

6

344

10

69

7

2

6 2

117 Pitágoras campuses

11 INED campuses

24

13654 Primary and Secondary Associate Schools in Brazil (+6 in Japan)

1

1

206

OPERATING REVENUE

TOTAL GROSS REVENUE

Valores em R$ ('000) 2Q09 2Q08 Var. 6M09 6M08 Var. 2Q09 2Q08 Var. 6M09 6M08 Var.

Gross Sales Revenue 101,758 77,155 31.9% 218,369 153,574 42.2% 112.3% 109.9% 2.5 p.p 110.3% 108.8% 1.5 p.p Primary and Secondary Education 29,090 25,341 14.8% 75,334 65,661 14.7% 108.0% 105.0% 2.9 p.p 104.9% 106.0% (1.0) p.p. Post-secondary Education 72,668 51,815 40.2% 143,035 87,873 62.8% 114.2% 112.4% 1.8 p.p 113.3% 110.9% 2.4 p.p Others - 0 (100.0)% - 40 (100.0)% - - - - 100.0% -(-) Deductions (11,184) (6,938) 61.2% (20,339) (12,372) 64.4% (12.3)% (9.9)% (2.5) p.p. (10.3)% (8.8)% (1.5) p.p. Primary and Secondary Education (2,149) (1,214) 76.9% (3,544) (3,703) (4.3)% (8.0)% (5.0)% (2.9) p.p. (4.9)% (6.0)% 1.0 p.p Taxes (PIS, Cofins, ISS and ICMS) (705) (637) 10.7% (1,183) (1,095) 8.0% (2.6)% (2.6)% 0.0 p.p (1.6)% (1.8)% 0.1 p.p Returns (1,433) (560) 155.9% (2,196) (1,883) 16.6% (5.3)% (2.3)% (3.0) p.p. (3.1)% (3.0)% (0.0) p.p. Others (11) (17) (35.3)% (165) (725) (77.2)% (0.0)% (0.1)% 0.0 p.p (0.2)% (1.2)% 0.9 p.p Post Secondary Education (9,035) (5,724) 57.8% (16,795) (8,669) 93.7% (14.2)% (12.4)% (1.8) p.p. (13.3)% (10.9)% (2.4) p.p. Taxes (PIS, Cofins, ISS) (2,071) (1,313) 57.7% (4,106) (2,137) 92.1% (3.3)% (2.8)% (0.4) p.p. (3.3)% (2.7)% (0.6) p.p. ProUni (5,962) (3,800) 56.9% (10,798) (5,569) n.m (9.4)% (8.2)% (1.1) p.p. (8.6)% (7.0)% (1.5) p.p. Returns (141) (135) 4.4% (435) (311) 39.9% (0.2)% (0.3)% 0.1 p.p (0.3)% (0.4)% 0.0 p.p Unconditional Discounts (861) (476) 80.9% (1,456) (652) 123.3% (1.4)% (1.0)% (0.3) p.p. (1.2)% (0.8)% (0.3) p.p.Net Revenue 90,574 70,217 29.0% 198,030 141,202 40.2% 100.0% 100.0% 0.0 p.p 100.0% 100.0% 0.0 p.p Primary and Secondary Education 26,941 24,126 11.7% 71,790 61,958 15.9% 29.7% 34.4% (4.6) p.p. 36.3% 43.9% (7.6) p.p. Post-secondary Education 63,633 46,091 38.1% 126,240 79,204 59.4% 70.3% 65.6% 4.6 p.p 63.7% 56.1% 7.7 p.p Others - 0 (100.0)% - 40 (100.0)% 0.0% 0.0% (0.0) p.p. 0.0% 0.0% (0.0) p.p.

Net revenue %

FINANCIAL CIAL

FINANCIAL CIAL

11.0 17.8 25.3 29.19.916.8

51.872.7

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

90,0

100,0

2Q06 2Q07 2Q08 2Q09Primary and Secondary Education Post-Secondary Education

20.9

34.6

101.877.1

GROSS REVENUE GROWTH(R$ million)

2Q09 2Q08 Var. 6M09 6M08 Var.Pitágoras # 38,439 31,824 20.8% 38,289 26,445 44.8%INED 5,038 3,618 39.2% 5,062 3,057 65.6%Post-Secondary Education 43,477 35,442 22.7% 43,351 29,502 46.9%

Average Number of Students

GROSS REVENUE DEDUCTIONS Post-Secondary Education:

FINANCIAL CIAL

Primary and Secondary Education:

TOTAL NET REVENUE

FINANCIAL CIAL

COST OF PRODUCTS AND SERVICES


Cost of Products and Services (58,864) (48,451) 21.5% (113,277) (79,488) 42.5% Cost of Products Sold (3,455) (3,889) -11.2% (10,651) (8,401) 26.8% Cost of Services (55,409) (44,561) 24.3% (102,626) (71,087) 44.4%Cost of Products and Services / % Net Revenue -65.0% -69.0% 4.0 p.p -57.2% -56.3% (0.9) p.p. Cost of Products Sold / % Net Revenue -3.8% -5.5% 1.7 p.p -5.4% -5.9% 0.6 p.p Cost of Services / % Net Revenue -61.2% -63.5% 2.3 p.p -51.8% -50.3% (1.5) p.p.

FINANCIAL CIAL

10.2 16.8 24.1 26.99.416.3

46.163.6

0,0

0,0

0,0

0,0

0,0

0,0

0,0

0,0

0,0

0,0

0,0

2Q06 2Q07 2Q08 2Q09

Primary and Secondary Education Post Secondary Education

33.1

19.6

90.5

70.2

NET REVENUE GROWTH(R$ million)

GROSS PROFIT AND GROSS MARGIN

FINANCIAL CIAL

Values in R$ (thousand) 2Q09 2Q08 Var. 6M09 6M08 Var. 2Q09 2Q08 Var. 6M09 6M08 Var.

Gross Revenue 101,758 77,155 31.9% 218,369 153,574 42.2% 112.3% 109.9% 2.5 p.p 110.3% 108.8% 1.5 p.p(-) Deductions (11,184) (6,938) 61.2% (20,339) (12,372) 64.4% -12.3% -9.9% (2.5) p.p. -10.3% -8.8% (1.5) p.p.Net Revenue 90,574 70,217 29.0% 198,030 141,202 40.2% 100.0% 100.0% 0.0 p.p 100.0% 100.0% 0.0 p.p(-) Cost of Products and Services (58,864) (48,451) 21.5% (113,277) (79,488) 42.5% -65.0% -69.0% 4.0 p.p -57.2% -56.3% (0.9) p.p.Gross Profit 31,710 21,766 45.7% 84,753 61,714 37.3% 35.0% 31.0% 4.0 p.p 42.8% 43.7% (0.9) p.p.

Net revenue % Net revenue %

OPERATING EXPENSES

FINANCIAL CIAL


Gross Profit 31,710 21,766 45.7% 84,753 61,714 37.3% 35.0% 31.0% 4.0 p.p 42.8% 43.7% (0.9) p.p.Gross Margin 35.0% 31.0% 4.0 p.p 42.8% 43.7% (0.9) p.p. - - -Operating Expenses (Income) (22,531) (18,203) 23.8% (43,656) (34,644) 26.0% (24.9)% (25.9)% 1.0 p.p (22.0)% (24.5)% 2.5 p.p Selling Expenses (12,049) (7,914) 52.3% (21,941) (14,473) 51.6% (13.3)% (11.3)% (2.0) p.p. (11.1)% (10.3)% (0.8) p.p. Personnel Expenses (4,732) (3,353) 41.1% (9,060) (7,326) 23.7% (5.2)% (4.8)% (0.4) p.p. (4.6)% (5.2)% 0.6 p.p General and Administrative (6,549) (5,518) 18.7% (13,783) (10,890) 26.6% (7.2)% (7.9)% 0.6 p.p (7.0)% (7.7)% 0.8 p.p. Other Operating Income (Expenses) 955 806 18.5% 1,439 1,460 (1.4)% 1.1% 1.1% (0.1) p.p. 0.7% 1.0% (0.3) p.p. Goodwill Amortization (156) (2,224) (93.0)% (311) (3,415) (90.9)% (0.2)% (3.2)% 3.0 p.p (0.2)% (2.4)% 2.3 p.p.Operating Result Before Financial Result 9,179 3,564 157.6% 41,097 27,070 51.8% 10.1% 5.1% 5.1 p.p 20.8% 19.2% 1.6 p.p.


FINANCIAL CIAL

FINANCIAL CIAL

14.617.3

28.820.8%

19.1%

20.4%

18.7%

17,5%

18,0%

18,5%

19,0%

19,5%

20,0%

20,5%

21,0%

0,0

5,0

10,0

15,0

20,0

25,0

30,0

2Q08 2Q09 6M08 6M09SG&A / % Net Revenue

Reduction due to gains of scale and synergies.

*Excluding Goodwill Amortization and Provision for Doubtful Accounts.

SALES, GENERAL AND ADMINISTRATIVE EXPENSES (SG&A) &SG&A/NET REVENUE

(R$ million)

37.1

EBITDA AND EBITDA MARGIN

FINANCIAL CIAL

8.012.9

34,0

48,6

11.4%14.3%

24,0% 24.6%

0,0%

5,0%

10,0%

15,0%

20,0%

25,0%

30,0%

0,0

10,0

20,0

30,0

40,0

50,0

60,0

70,0

80,0

2Q08 2Q09 6M08 6M09

EBITDA & EBITDA MARGIN (R$ million)

EBITDA Margin


Net Income 6,316 2,109 199.5% 31,221 25,884 20.6% 7.0% 3.0% 4.0 p.p 15.8% 18.3% (2.6) p.p.(-) Income Tax and Social Contribution 1,322 3,728 (64.5)% 7,754 10,394 (25.4)% 1.5% 5.3% (3.8) p.p. 3.9% 7.4% (3.4) p.p.(-) Financial Results 1,574 (2,268) (169.4)% 2,197 (9,203) (123.9)% 1.7% (3.2)% 5.0 p.p 1.1% (6.5)% 7.6 p.p(+) Goodwill Amortization 156 2,224 (93.0)% 311 3,415 (90.9)% 0.2% 3.2% (3.0) p.p. 0.2% 2.4% (2.3) p.p.(+) Depreciation and Amortization 3,579 2,217 61.5% 7,160 3,467 106.5% 4.0% 3.2% 0.8 p.p 3.6% 2.5% 1.2 p.pEBITDA 12,947 8,009 61.7% 48,643 33,957 43.2% 14.3% 11.4% 2.9 p.p 24.6% 24.0% 0.5 p.p

EBITDA Margin 14.3% 11.4% 25.3% 24.6% 24.0% 2.1% - - -


NET FINANCIAL RESULT

INCOME TAX AND SOCIAL CONTRIBUITION ON NET PROFIT

FINANCIAL CIAL


Financial Result (1,574) 2,268 (169.4)% (2,197) 9,203 (123.9)% -1.7% 3.2% (5.0) p.p. -1.1% 6.5% (7.6) p.p. Financial Revenue (i) 2,752 6,939 (60.3)% 6,429 15,430 (58.3)% 3.0% 9.9% (6.8) p.p. 3.2% 10.9% (7.7) p.p. Financial Expenses (4,326) (4,671) (7.4)% (8,626) (6,227) 38.5% -4.8% -6.7% 1.9 p.p -4.4% -4.4% 0.1 p.p Bank Expenses (ii) (1,007) (941) 7.0% (1,353) (1,206) 12.2% -1.1% -1.3% 0.2 p.p -0.7% -0.9% 0.2 p.p Interest on Loans (iii) (390) (729) (46.5)% (838) (1,338) (37.4)% -0.4% -1.0% 0.6 p.p -0.4% -0.9% 0.5 p.p Conditional Discounts (iv) (2,557) (2,918) (12.4)% (5,107) (3,496) 46.1% -2.8% -4.2% 1.3 p.p -2.6% -2.5% (0.1) p.p. Monetary Passive Variation (v) (372) (83) 348.2% (1,328) (187) 610.2% -0.4% -0.1% (0.3) p.p. -0.7% -0.1% (0.5) p.p.


NET INCOME AND ADJUSTED NET INCOME


Net Income 6,316 2,109 199.5% 31,221 25,884 20.6% 7.0% 3.0% 4.0 p.p 15.8% 18.3% (2.6) p.p.Income Tax and Social Contribution 966 1,482 (34.8)% 1,435 2,535 (43.4)% 1.1% 2.1% (1.0) p.p. 0.7% 1.8% (1.1) p.p.Goodwill Amortization 156 2,224 (93.0)% 311 3,415 (90.9)% 0.2% 3.2% (3.0) p.p. 0.2% 2.4% (2.3) p.p.Adjusted Net Income 7,438 5,815 27.9% 32,967 31,834 3.6% 8.2% 8.3% (0.1) p.p. 16.6% 22.5% (5.9) p.p.

Adjusted Net Income Margin 8.2% 8.3% (0.8)% 16.6% 22.5% (26.2)% - - -


FINANCIAL CIAL

2.1

6.3

25.8

31.2

3.0%

7.0%

18.3%

15.8%

0,0%

2,0%

4,0%

6,0%

8,0%

10,0%

12,0%

14,0%

16,0%

18,0%

20,0%

-

5,0

10,0

15,0

20,0

25,0

30,0

35,0

2Q08 2Q09 6M08 6M09

Net Income Margin

NET INCOME & NET INCOME MARGIN(R$ million)

ARGIN

CAPITAL AND CASH

FINANCIAL CIAL

Values in R$ (thousand) 2Q09 1Q09 Var.

Cash and Banks 77.889 105.010 (25,8)%Loans and financing 15.830 16.582 (4,5)% Short-term Debt 5.212 5.332 (2,3)% Long-term Debt 10.618 11.250 (5,6)%Shareholders Equity 446.918 452.676 (1,3)%Total Capitalization 462.748 469.258 (1,4)%Net Cash 62.059 88.428 (29,8)%

CASH FLOW AND INVESTMENTS

FINANCIAL CIAL

105,0

12,9 (1,3) (1,6) (3,7) (18,9)

(11,8)

(3,9) (0,8)2,0 77,9

(R$ million)

(57.0)

RESULTS ADJUSTED FOR CONDITIONAL DISCOUNTS


Gross Sales Revenue 101,758 77,155 31.9% 218,369 153,574 42.2%

Adjusted Deductions (13,741) (9,856) 39.4% (25,446) (15,868) 60.4%

Adjusted Net Sales Revenue 88,017 67,299 30.8% 192,923 137,706 40.1%

Net Income 6,316 2,109 199.5% 31,221 25,884 20.6%

Net Income Margin 7.2% 3.1% 4.0 p.p 16.2% 18.8% (2.6) p.p.

Adjusted EBITDA 10,390 5,091 104.1% 43,536 30,461 42.9%

Adjusted EBITDA Margin 11.8% 7.6% 4.2 p.p 22.6% 22.1% 0.4 p.p

Adjusted Net Income 7,438 5,815 27.9% 32,967 31,834 3.6%Adjusted Net Income Margin 8.5% 8.6% (0.2) p.p. 17.1% 23.1% (6.0) p.p.

FINANCIAL CIAL

CAPITAL INCREASE AND DIVIDENDS

SUBSEQUENT QUENT

NEW BOARD OF DIRECTORS AND COMMITTEES

SUBSEQUENT QUENT

SUBSEQUENT QUENT

SUBSEQUENT QUENT

SUBSEQUENT QUENT

ABOUT KROTON EDUCACIONAL

KROTON

2Q09 Change

06/30/2009 Var. 03/31/2009 Var. Mar-09 / Jun-09

Current Assets 215,736 39.7% 245,507 43.5% -12.1%

Cash and Banks 77,889 14.3% 105,010 18.6% -25.8%

Trade Accounts Receivable 97,405 17.9% 106,988 19.0% -9.0%

Inventories 9,935 1.8% 7,696 1.4% 29.1%

Recoverable Taxes 8,017 1.5% 7,528 1.3% 6.5%

Prepaid Expenses 1,012 0.2% 997 0.2% 1.5%

Other Accounts Receivable 21,478 3.9% 17,288 3.1% 24.2%

Noncurrent Assets 9,702 1.8% 10,450 1.9% -7.2%

Deferred Taxes 7,749 1.4% 8,499 1.5% -8.8%

Receivables from Related Parties 1,550 0.3% 1,550 0.3% 0.0%

Other 403 0.1% 401 0.1% 0.5%

Permanent Assets 318,316 58.5% 308,545 54.7% 3.2%

Fixed Assets 148,621 27.3% 139,781 24.8% 6.3%

Intangible 167,111 30.7% 166,180 29.4% 0.6%

Deferred 2,584 0.5% 2,584 0.5% 0.0%

Total Assets 543,754 100.0% 564,502 100.0% -3.7%

Liabilities and Shareholders' Equity

Current 70,944 13.0% 84,568 15.0% -16.1%

Trade Account Payable 19,297 3.5% 21,415 3.8% -9.9%

Loans and Financing 5,212 1.0% 5,332 0.9% -2.3%

Payments and Social Charges 18,417 3.4% 14,224 2.5% 29.5%

Income and Social Contribution Taxes 6,398 1.2% 5,973 1.1% 7.1%

Tax and Contribuitons Collectable 2,221 0.4% 2,514 0.4% -11.7%

Advances from Customers 5,808 1.1% 17,896 3.2% -67.5%

Others 13,591 2.5% 17,214 3.0% -21.0%

Noncurrent Liabilities 26,008 4.8% 27,338 4.8% -4.9%

Trade Account Payable 4,269 0.8% 4,658 0.8% -8.4%

Loans and Financing 10,618 2.0% 11,250 2.0% -5.6%

Debts with controlers 160 0.0% 160 0.0% 0.0%

Other Liabilities 10,961 2.0% 11,270 2.0% -2.7%

Minority Interest (116) 0.0% (80) 0.0% 45.0%

Shareholder´s Equity 446,918 82.2% 452,676 80.2% -1.3%

Capital 404,066 74.3% 404,066 71.6% 0.0%

Capital Reserves 3,760 0.7% 3,760 0.7% 0.0%

Treasury Stocks (21,436) -3.9% (21,413) -3.8% 0.1%

Retained Earnings 60,528 11.1% 66,263 11.7% -8.7%

Total Liabilities and Shareholders' Equity 543,754 100.0% 564,502 100.0% -3.7%

Period ended on

(In thousand reais, except otherwise indicated)

2Q09 Change

2Q09 Var. 2Q08 Var. 2008 / 2009

Gross Revenue 101,758 112.3% 77,155 109.9% 31.9%

Primary and Secondary Education 29,090 32.1% 25,341 36.1% 14.8%

Post-secondary Education 72,668 80.2% 51,815 73.8% 40.2%

Deductions (11,184) -12.3% (6,938) -9.9% 61.2%

Primary and Secondary Education (2,149) -2.4% (1,214) -1.7% 76.9%

Post-secondary Education (9,035) -10.0% (5,724) -8.2% 57.8%

Net Revenue 90,574 100.0% 70,217 100.0% 29.0%



Costs of Products/Services (58,864) -65.0% (48,451) -69.0% 21.5%

Cost of Products Sold (3,455) -3.8% (3,889) -5.5% -11.2%

Cost of Services (55,409) -61.2% (44,561) -63.5% 24.3%

Gross Profit 31,710 35.0% 21,766 31.0% 45.7%

Operating Income (Expenses) (22,531) -24.9% (18,203) -25.9% 23.8%

Selling Expenses (6,998) -7.7% (6,560) -9.3% 6.7%

Allowance for Doubtful Accounts (5,051) -5.6% (1,354) -1.9% 273.1%

Personnel Expenses (3,434) -3.8% (2,404) -3.4% 42.9%

General and Administrative Expenses (6,549) -7.2% (5,518) -7.9% 18.7%

Management Remuneration (1,298) -1.4% (949) -1.4% 36.8%

Other Operating Income (Expenses) 955 1.1% 806 1.1% 18.5%

Goodwill Amortization (156) -0.2% (2,224) -3.2% -93.0%

Operating Result before Financial Result

9,179 10.1% 3,564 5.1% 157.6%

Financial Results (1,574) -1.7% 2,268 3.2% -169.4%

Financial Expenses (4,328) -4.8% (4,671) -6.7% -7.3%

Financial Revenues 2,754 3.0% 6,939 9.9% -60.3%

Income (Loss) before Taxes and Social Contribution 7,605 8.4% 5,832 8.3% 30.4%

Income and Social Contribution Taxes (1,322) -1.5% (3,728) -5.3% 182.0%

Current (356) -0.4% (2,246) -3.2% 530.8%

Deferred (966) -1.1% (1,482) -2.1% -34.8%

Minority Interests 33 0.0% 5 0.0% 560.0%

Net Income (Loss) for the Period 6,316 7.0% 2,109 3.0% 199.5%

Period ended on


2Q09 Change

6M09 Var. 6M08 Var. 2008 / 2009

Gross Revenue 218,369 110.3% 153,574 108.8% 42.2%



Other 0 0.0% 40 0.0% -100.0%

Deductions (20,339) -10.3% (12,372) -8.8% 64.4%

Primary and Secondary Education (3,544) -1.8% (3,703) -2.6% -4.3%

Post-secondary Education (16,795) -8.5% (8,669) -6.1% 93.7%

Net Revenue 198,030 100.0% 141,202 100.0% 40.2%



Other 0 0.0% 40 0.0% -100.0%

Costs of Products/Services (113,277) -57.2% (79,488) -56.3% 42.5%

Cost of Products Sold (10,651) -5.4% (8,401) -5.9% 26.8%

Cost of Services (102,626) -51.8% (71,087) -50.3% 44.4%

Gross Profit 84,753 42.8% 61,714 43.7% 37.3%

Operating Income (Expenses) (43,656) -22.0% (34,644) -24.5% 26.0%

Selling Expenses (15,648) -7.9% (12,096) -8.6% 29.4%

Allowance for Doubtful Accounts (6,293) -3.2% (2,377) -1.7% 164.7%

Personnel Expenses (7,201) -3.6% (6,021) -4.3% 19.6%

General and Administrative Expenses (13,783) -7.0% (10,890) -7.7% 26.6%

Management Remuneration (1,859) -0.9% (1,305) -0.9% 42.5%

Other Operating Income (Expenses) 1,439 0.7% 1,460 1.0% -1.4%

Goodwill Amortization (311) -0.2% (3,415) -2.4% -90.9%

Operating Result before Financial Result

41,097 20.8% 27,070 19.2% 51.8%

Financial Results (2,197) -1.1% 9,203 6.5% -123.9%

Financial Expenses (8,628) -4.4% (6,227) -4.4% 38.6%

Financial Revenues 6,431 3.2% 15,430 10.9% -58.3%

Income (Loss) before Taxes and Social Contribution 38,900 19.6% 36,273 25.7% 7.2%

Income and Social Contribution Taxes (7,754) -3.9% (10,394) -7.4% 34.0%

Current (6,319) -3.2% (7,859) -5.6% 24.4%

Deferred (1,435) -0.7% (2,535) -1.8% -43.4%

Minority Interests 75 0.0% 5 0.0% 1400.0%

Net Income (Loss) for the Period 31,221 15.8% 25,884 18.3% 20.6%

Period ended on


2Q09 Consolidated

2Q09 1Q09

Cash Flow from Operating Activities

Net Income(Loss) for the Period 6,316 24,905

Adjustments to Reconcile Net Income to Cash Provided by Operating Activities Depreciation and Amortization 3,735 3,736

Income and Social Contribution Taxes - Deferred 966 469

Income and Social Contribution Taxes - On the Period 356 5,963

Minority Interests (36) (40)

Changes in assets and liabilities (Increase) Decrease in Accounts Receivable 9,583 (45,300)

(Increase) Decrease in Inventories (2,254) 2,475

(Increase) Decrease in other Accounts Receivable (4,897) 2,626

Increase (Decrease) in Trade Accounts Payable (2,507) 3,545

Decrease in other Accounts Payable (12,014) (9,053)

Increase (Decrease) in Advances from Customers (12,088) 10,522

Net Cash Provided by (Used in) Operating Activities (12,840) (152)

Cash Flow from Investing Activities

Acquisition of fixed assets (11,839) (8,463)

Additions to intangible (3,965) (9,374)

Goodwill Adjustment 2,020

Result on sales of permanent assets 278 -

Net Cash used in Investing Activities (13,506) (17,837)

Cash Flow from Financing Activities Treasury Stocks (23) (345)

Payment of Loans and Financing (1,142) (1,319)

Payment Interests over Loans 390 450

Net Cash Provided by (Used in) Financing Activities (775) (1,214)

Decrease in Cash (27,121) (19,203)

Cash - at Beginning of Period 105,010 124,213

Cash - at End of Period 77,889 105,010

Decrease in Cash (27,121) (19,203)

Documents

2Q09 EARNINGS - mzweb.com.br · Mineração Fazenda Brasileiro – Teofilândia (BA) Mineração Taboca – Pitinga (AM) Mineração Onça Puma - Ourilândia do Norte(PA) Learning